Healthcare M&A: Record-High Valuations Are Forcing Acquirers to Get Creative

Strategic healthcare M&A rebounded in 2021 from a down year in pandemic-ravaged 2020, with volume up 16% and total deal value rising by 44%, to $440 billion, Bain & Company reports. The year 2021 brought with it a return to pre-pandemic trends across all five sectors: pharmaceuticals, medtech, payers, providers, and healthcare services. What’s different this time, though, is that the cost of acquisitions has become dramatically more expensive in most areas, with deal multiples reaching the highest level in decades. Paying for these inflated multiples requires companies to get more creative in their deal theses and focus on better execution to deliver on deal value. Here’s what the best acquirers are doing. Read more.

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